Personal loans work like any other loan, but it offers more flexibility and is pretty much available to everyone.

There are two types of personal loans namely secured and unsecured ones.

Generally, personal loans are sanctioned to salaried, non-salaried and self-employed individuals. However, the documentation and rate of interest is different for personal loans granted to the self-employed individuals.

The self-employed are those individual who own an unincorporated business all by themselves. They are known as sole proprietor of the business.

BankBazaar report says, "Though it might seem like it might be hard for self employed individuals to avail personal loans due to the fact that they are not salaried, that is not the case. They can easily avail personal loans without any hassles."